Julaihi (centre) and the Sarawak delegation with their hosts.
BEIJING: The state government plans to make Sarawak a regional hub of furniture made from Acacia timber.
In view of that, it is inviting industry players in China under the country’s ‘One Belt, One Road’ plan to explore collaboration on such opportunities in the state.
China is the eight biggest market for Sarawak exports valued at USD52 million, comprising mostly logs, plywood), sawn timber, veneer and others such as laminated board, flooring, MDC, particle board and furniture.
In making the invitation, Assistant Minister of Industrial Development (Investment and Promotion) Datuk Julaihi Narawi said the furniture industry players in China should consider expanding their markets abroad by working with partners from Sarawak to accelerate the growth of the furniture manufacturing industry and increase exports.
Julaihi said this at a meeting with Beijing Daybreak Wenyi Furnite Co. Ltd and China Timber & Wooden Products Distribution Association (CTWPDA) in Beijing on Aug 27.
He and his delegation are on an investment promotion mission to China from Aug 20 to 29.
The group was met by Shuai Bin, general manager of Beijing Daybreak and Liu Neng Wen, president of CTWPDA and officers of the company and associations.
The Sarawak delegation included Sarawak Timber Industry Corporation (STIDC) general manager Datu Sarudu Hoklai and members of Sarawak Timber Association (STA).
To make his point, Julaihi said Sarawak has the raw materials and other enablers to facilitate the growth of the furniture industry.
“Our plan is to make Sarawak the hub for Acacia furniture in the region in the future,” he told the hosts.
He also said Sarawak had a niche in the solid wood furniture for export to China, given the availability of many exotic timber species in the state.
He echoed the statement of Minister of Industrial and Entrepreneur Development, Trade and Investment Datuk Amar Awang Tengah Ali Hasan that supply of raw materials from forest plantations in Sarawak was expected to grow in line with the state’s strategic sustainable forest management policy.
Awang Tengah made the statement in a meeting with business leaders from the timber and halal food industry in Xianin Shaanxi Province on Aug 23.
Under the Log Quota Reservation Policy since the 1980s, the state’s downstream industry has made Sarawak the biggest supplier and exporter of tropical hardwood plywood in the region.
Last year, Sarawak produced 2.3 million m3 of plywood, 0.8 million m3 of sawn timber and 0.8 million m3 of other products such as veneer, dowel, mouldings, laminated board, particle board, MDF and laminated flooring.
It also produced 0.6 million metric tonnes of woodchip, charcoal briquette, wood pellet and core plugs and door skin, among others. The state also produced eight million m3 of logs from natural forest and 911,000 m3 of logs from forest plantation.
The government’s policy to plant one million ha of forest plantation by 2020 is expected to produce more than 10 million m3 of logs that could meet the domestic requirement.
Currently, 380,000 ha of land have been planted with fast growing tree species such as Acacia Mangium as a long term strategy towards providing an alternative source of raw materials to sustain growth of wood-based industries in the state.
Julaihi invited furniture companies in China to visit the state to find out first-hand the possibility of economic cooperation and investment in Sarawak to tap into the regional Asian markets.